Türkiye revised its growth forecast for 2026 to 3.3% from an earlier 3.8% and it expects inflation at 28.4%, Vice President Cevdet Yılmaz announced while presenting the new 2027-2029 Medium-Term Program (MTP) on Sunday.

"We expect inflation to start declining again in the fourth quarter of 2026 and to reach 28.4% by the end of the year," Yılmaz said in a televised address.

Under the new program, inflation is projected to fall to 21% in 2027, 13.5% in 2028 and 9% in 2029.

Türkiye's annual inflation rate eased to 31.51% in August from 31.75% in July, according to official data.

Yılmaz said the war in the Middle East had played a key role in the upward revision of the inflation outlook.

"According to our central bank, the direct and indirect effects of the war on inflation have been estimated at approximately seven percentage points," he said.

The vice president also said the government had made "significant progress in combating inflation," which remains the top priority of its economic program.

"Inflation, which had risen to 75.5% in May 2024, has begun to show a clear downward trend as a result of the policies we have implemented," he said.